AKB Green Mortgage finances climate buildings
The Aargauische Kantonalbank (AKB) is now offering reduced interest rates for all heated and cooled properties. The AKB Green Mortgage will be extended from private to business and commercial properties.
The Aargauische Kantonalbank ( AKB ) is expanding its mortgage product to include all environmentally friendly properties. According to the press release , since May 2nd it has been financing not only owner-occupied residential properties but also all thermally regulated investment properties as well as business and commercial properties with the certified AKB Green Mortgage. From the perspective of the cantonal bank, this is particularly interesting for small and medium-sized enterprises (SMEs). “With the product expansion to business and commercial properties, we now also offer a sustainable, attractive financing solution for SMEs,” Patrick Küng, Head of Corporate Customers & Institutional Banking at AKB, is quoted as saying.
With the AKB Green Mortgage, AKB promotes environmentally friendly construction activity and in this way supports the reduction of greenhouse gas emissions from buildings, according to the cantonal bank. With terms of two to ten years, the AKB Green mortgage offers a significant interest rate advantage over the standard interest rates of conventional fixed-rate mortgages. AKB is expected to launch another Green Bond to finance the AKB Green Mortgage over the course of the year.
The report on the effect of the Green Bond states that in 2020 and 2021 a reduction of around 490 tons of CO2 was achieved with the sustainable mortgage offer for owner-occupied residential property. That corresponds to the annual CO2 emissions of around 393 new, commercially available passenger cars.